News
Each day, DailyAlts tracks major developments across the alternative investment world. Our content is procured from primary contacts in the industry and secondary sources across the web. Our goal is to give readers the most up-to-date news and engaging experience to open new doors and areas of knowledge. Our stories cover nine separate verticals of the alternative investment industry.
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Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while the ROCm 6 open software stack introduces new features supporting Large Language Models (LLMs). Additionally, the Ryzen 8040 Series processors come equipped with Ryzen AI capabilities.
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Venture Capital: Andreessen Horowitz’s Thesis – “Multiplayer Game Experiences are the Next Social Networks”
Worldwide gaming has become serious business with the number of gamers estimated to run in the billions and industry revenues topping $160 billion. In February, a16z led an investment of $150 million in Roblox, an online game platform and game creation system that allows users to program games and play games created by other users. Andreessen Horowitz, or a16z, the billion-dollar venture capital firm, is stepping up investments in games. Its thesis: “Multiplayer Game Experiences are the Next Social Networks”
Artificial Intelligence: Outgoing JAIC Director Shanahan Says the Pentagon Will Transform Itself Through AI
AI and machine learning are going to be inextricably woven into the functioning of every area in the Department of Defense (DoD). That’s according to Lt. Gen. Jack Shanahan, Director, Joint Artificial Intelligence Center (JAIC). In the interview, Shanahan said: “There is no part of the department that will not be impacted by this. From the back office to the battlefield, and as I like to say, from under the sea to cyberspace and outer space, and all points in between – everything could be made better through the application of AI.”
Alternative Investments: Pacer Acquires Negative Fee ETF from Salt Financial
The Salt Low truBeta U.S. Market ETF (BATS: LSLT) and its sister fund, the Salt High truBeta U.S. Market ETF (BATS: SLT), are being acquired by Pacer ETFs. LSLT is a negative expense ratio ETF.
Artificial Intelligence: The Department of Energy Aims For “AI-Focused Grand Challenges”
The Department of Energy’s Artificial Intelligence and Technology Office (AITO) has issued a Request for Information (RFI) to experts from national laboratories, academia, industry, and others. The RFI asks these organizations for information and insights on how to achieve path-breaking breakthroughs in AI.
FinTech: Top-Flight Banks Line-up To Invest in H4
A consortium that included JP Morgan (NYSE: JPM), Goldman Sachs (NYSE: GS), Barclays (NYSE: BCS), and Linklaters has invested about $27 million in digital documentation start-up H4.
H4, which is headquartered in London, specializes in the creation of legal and compliant documents used by the capital markets. It has approximately 120 employees, including investment bankers, technologists, corporate lawyers, and product designers. Four leading global banks as well as 14 of the world’s leading law firms have successfully utilized H4’s technology.
Alternative Investments: The Case for Emerging Market ETFs
Comparing stock returns from US stocks and those in emerging markets, it turns out that over the really long term, these are nearly the same. Andrew Hallam observes that between January 1988 and May 31, 2020, emerging markets saw an average return of 10.15% per year, while the S&P 500 averaged 10.69%. However, in between, during various periods, the performance varies. “Sometimes, U.S. stocks win. Other times, emerging markets take the prize. It depends on what period you’re measuring,” says Hallam. Emerging market ETFs are a great deal now.
Venture Capital: Palantir, Last Valued at $20B, May Finally Bite The IPO Bullet
Palantir Technologies Inc., one of the venture world’s most anticipated IPOs, may soon hit the markets, according to a report by Reuters. The company processes big data for the U.S. government, including for some of its highly sensitive projects. Its clients also include global banks as well as the CIA. Reportedly, its technology was instrumental in locating Osama bin Laden. Reuters’ sources said the company was working towards a September time table, market conditions permitting.
Liquid Alternatives: Mackenzie’s Alternative Enhanced Yield Fund is its Fifth Liquid Alt Offering
Mackenzie Investments launched today the Mackenzie Alternative Enhanced Yield Fund which generates returns using alternative strategies to build a diversified portfolio.
Venture Capital: API Development Platform Postman Raises $150M at a $2B Valuation
Insight Partners led a $150 million Series C funding round in API development and collaboration platform Postman. The startup, which was founded in Bengaluru in 2014, is now valued at an impressive $2 billion valuation.
Artificial Intelligence: Gaffe by Microsoft’s Robotic Editor at MSN
Microsoft (NASDAQ: MSFT) has egg on its face after an AI software deployed in replacement of human editors at MSN mixed up images of mixed-race members of the band Little Mix. The AI software illustrated a story about Little Mix singer Jade Thirlwall (on the left) with an image of her band-mate Leigh-Anne Pinnock (right).
FinTech: Amazon Launches Credit Line for Small Businesses In Partnership With Goldman Sachs
Amazon (NASDAQ: AMZN) has launched a new digital credit line for U.S.-based SMB merchants that sell on its platform. The eCommerce giant will offer the facility in collaboration with Goldman Sachs’ Marcus brand (NYSE: GS), according to exclusive information obtained by CNBC
Digital Assets: Galaxy Digital and Bakkt Launch a Bitcoin ‘White Glove’ Service For Institutions
Galaxy Digital, owned by Mike Novogratz, and Bakkt, the bitcoin futures provider majority-owned by the Intercontinental Exchange, have teamed up to offer top-flight services to institutions and asset managers relating to bitcoin.
Private Equity: Apollo Global Management Splits With ICICI Venture
Apollo Global Management is splitting away from its long-time joint venture partner ICICI Venture, a unit of ICICI Bank (IBN). Apollo will be starting its own credit investment business in India. Apollos will stop adding capital to the venture, Aion Capital Partners, and begin to look for opportunities to invest in credit opportunities independently.
Digital Assets: Fidelity Report Says Institutional Adoption of Crypto Gaining Traction
Fidelity Digital Assets issued a report on digital assets on Tuesday based on a survey of nearly 800 institutions in the U.S. and Europe conducted from November 2019 through early March 2020.
A growing number of institutional investors believe that digital assets should be a part of their investment portfolios, the report found. In fact, 80% of institutional investors found something appealing about the asset class.
Liquid Alternatives: AQR Launches A Diversifying Strategies Mutual Fund That Will Invest in Six Alt Funds
AQR Capital Management, LLC announced Monday the launch of its AQR Diversifying Strategies Fund. This mutual fund invests in a portfolio of AQR’s six alternative mutual funds. Intended as a supplement to an investor’s traditional stock and bond portfolio, the Fund provides exposure to liquid alternatives with attractive long-term risk-adjusted returns.
Venture Capital: Collab Capital Makes Profit-Sharing Investments, and Only in Black Founders
The founders at Collab Capital want to change the diminutive amounts that flow to black entrepreneurs as venture capital – with a $50M fund.
Collab Capital calls it the “growing US racial wealth gap.” Founded by Jewel Solomon Burks, Justin Dawkins, and Barry Givens, the firm wants to address the problem by helping black founders build sustainable, technology-enabled businesses. It guides early-stage start-ups to higher revenue and profitability instead of building up valuations.
FinTech: Citi Tackles Abandoned Shopping Carts With Mastercard’s “Click to Pay”
In an Exclusive, PYMNTS.com revealed Tuesday that Citi’s Consumer Bank (NYSE: C) and Mastercard (NYSE: MA) were working together to remove the frustration from the checkout process in e-commerce transactions. Shoppers abandoned the transaction at this ultimate stage simply because it was too cumbersome, time-consuming, or required usually-forgotten passwords.
Liquid Alternatives: Wilshire Liquid Index Returns 1.54% in May
This figure surpassed the 1.44% return from the HFRX Global Hedge Fund Index in May. According to HedgeWeek, the index aims “to deliver precise market measures for the performance of diversified liquid alternative investment strategies implemented through mutual fund structures, backed by a proprietary classification methodology.”
Hedge Funds: A Reminder, Bill Ackman is Doing Fine
Bill Ackman is doing well in 2020.
In the wake of the COVID-19 pandemic, Pershing Square Capital Management has returned 22% to 27% this year. That easily tops the S&P 500. It has been quite a run for Ackman, whose fund made more than $2 billion while hedging on a downturn at the start of the outbreak. Ackman famously warned that “hell is coming” when urging President Donald Trump to shut down the U.S. economy for 30 days.
REITS: The Pay Cuts are Coming
The impact of COVID-19 has been drastic at many real estate investment trusts. Rents are not being paid in offices, malls, and other commercial real estate properties across the country. Many REITs have reduced or eliminated their dividends as cash flow began disappearing when the economy began to shut down to prevent the spread of the coronavirus.
Artificial Intelligence: CARES Act Funds Flow to the Pentagon for COVID-19 Vaccines; Lt. Gen. Jack Shanahan Retires at JAIC
In April the Department of Defense (DoD) announced plans to use AI and machine learning against COVID-19 and other future virus attacks. The DoD has now unveiled a spending plan to revamp its AI capabilities to “rapidly screen, prioritize, and test Food and Drug Administration approved therapeutics for new COVID-19 drug candidates and human test trials for vaccines and antibody-based treatments.”
Private Equity: Superior Plus Announces Investment Deal with Brookfield Asset Management
Superior Plus Corp. (TSX: SPB, SUIIF OTC) announced that Brookfield Asset Management Inc., through its Special Investments program, agreed to make a US$260 million equity investment. The deal comes through the purchase of newly created perpetual exchangeable Series 1 Preferred Stock of a U.S. subsidiary of Superior on a private placement basis.
Real Estate: Blackstone Mortgage Trust Announces Public Offering
Blackstone Mortgage Trust (NASDAQ: BXMT) announced the pricing of an underwritten public offering of 10,000,000 shares of its class A common stock.
The underwriters have been granted a 30-day option by the Company to purchase up to an additional 1,500,000 shares. The offering is expected to close on June 11, 2020, and is subject to customary closing conditions. The total estimated gross proceeds of the offering are approximately $282.0 million or roughly $324.3 million if the underwriters exercise their option to purchase additional shares in full.
Private Equity: Real Estate Firms Eye J.C. Penney
Private equity firm and Real Estate Investment Trusts are having discussions about buying J.C. Penney (NYSE:JCP) if the bankrupt retailer does not reach an agreement with creditors.
The department store filed for bankruptcy in May after the spread of the coronavirus forced the retailer to close more than 800 stores across the country. J.C. Penney had been struggling to survive for the past few years, and the virus was the final nail in its coffin.